By: Scott Davis 

  • Upcycle fundamentals remain intact, with supportive 2Q earnings
  • We are 8 years into broader economic expansion, but only 5 quarters into industrial upcycle after a long (but shallow) downcycle in 2015-2016
  • Industrial data continues to paint a very constructive picture
  • We expect another leg to the cycle to kick in by 2H18, which could be more powerful than first leg
  • Long cycle project orders and repatriated cash should move faster than expected into capex

MS Report Here